If a Realtor is not a short sale specialist, he/she should refer their short sale to a local Realtor who is.
The client-centric reason: It is the responsible thing to do for the client.
The Realtor-centric reason: Someone else does the stressful heavy lifting and the referring Realtor gets paid a referral fee.
The Importance of a Short Sale on the Client's Emotional and Financial Health
We have all heard that buying or selling a house is the biggest transaction for most consumers. The importance of that transaction is eclipsed by the magnitude of a foreclosure or short sale.
The expertise of the short sale Realtor will determine the outcome. A successful short sale enables the seller to avoid foreclosure and sell their house with dignity.
Far Reaching Implications
A successful short sale vs. a foreclosure has far reaching implications, including but not limited to:
- Debt forgiveness vs. deficiency judgments
- Credit score implications
- Reduced length of time until a new mortgage can be obtained
- The need, or lack of need, for a bankruptcy, whether it is pre-foreclosure or post-foreclosure bankruptcy
- The emotional advantage of avoiding foreclosure vs. going through a foreclosure
- Tax implications
- Potential loss of security clearance for certain employment
Referring a Short Sale Does NOT Indicate Weakness or an Admission of a Shortcoming
The sellers need to move on with their lives. Not every Realtor is trained and organizationally set up to handle short sales. That is OK. That doesn’t make the Realtor a bad Realtor. It just means that she or he doesn’t specialize in short sales, just like the short sales Realtor may not specialize in condos, commercial property, mobile homes, horse farms or a multitude of other real estate specialties.
Referring a Short Sale Listing to a Specialist Shows High Level of Responsibility and Loyalty to the Client
Referring a short sale listing actually shows a high level of responsibility and loyalty to the seller. Rather than diminish the seller's chances of a favorable outcome, the Realtor will refer their short sale to an expert who consistently delivers results.
Realtors Who Are Aspiring to Become Specialists Should First Get Highly Trained and Should Have Mentors
For the aspiring short sale Realtor, all short sale listings are an opportunity to hone your craft. The road to becoming a specialist includes getting comprehensive training on the fundamentals, plus never-ending continuous advanced training. In the beginning, one must be coached and mentored, so not to sacrifice your clients during the learning curve period.